FOREX MARKET WRAP: 21st August
Hi, and welcome to this Blueberry Markets video update with me, John Kibbler, Head Currency Analyst.
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In this video, we’re going to go through the Forex Market Wrap. We’re going to go through what has happened this week and how the market looks to be shaping up towards the end of the week.
I’m going to start here with EUR/USD. Obviously, the US Dollar is super important to us at the moment. It’s really of interest as we were expecting some US Dollar strength to come through this week.
It looks like that is now starting to shine through slightly, and we have to be a little bit cautious because, technically, in this daily time frame, the price is still making higher highs and higher lows. So, you have to be super careful with any US Dollar strength. But looking at this weekly time frame, it does look like the potential of a reversal is starting to form since we can see the market has made a higher high. But, we’ve got these candlesticks closing within each other’s ranges, which is really, really good to see. Typically when we see that, there’s a little bit of a reversal. So, what I’d expect to see out of this is, potentially, a move back down into these highs, here, which could offer us some decent trading opportunities to come on EUR/USD, especially with that US Dollar and that potential strength that could appear in the market.
What I’m predicting is a potential pullback into some areas of support, and then a continuation of this weekly trend. Obviously, that would be for the time to tell, and what happens with the global situation. But currently, the price in this area is where it could start pushing back down. So that’s going to be super interesting to have a look at in the Forex Market Outlook.
Same with GB Pound, really. GB Pound came up to the point where we were expecting the market to dip a little bit lower, broke above this high, and rejected it, currently. We’re expecting the pullback, here now, into this 1.17 area. So again, offering another opportunity for some shorting opportunities, through here.
One that we like the look of was Aussie and, again, getting that false breakout above that high. The market looks to be closing towards a bearish week again. We’re expecting that market to drop into that 0.7 area. Still, it looks pretty good for that to play out. So, all I need to see is a break in this channel. I want to see the market to really start aggressively pushing to the downside. It’s still, at the moment, in that up trending area, but I’m expecting that breakout to start to form now on this pair.
So, really, the focus for us is the majors this week or next week. And what happened, really, is that the US Dollar has gained some value and we can see that across the board, here, especially on EUR/USD.
We’ll look for that going into next week in the Forex Market Outlook. Where we’ll take a look at all currencies and how they performed for the week.
If we can see any kind of opportunities with regards to the strength and weakness of the currencies, obviously, one of those this week was AUD/CAD. That is moving nicely in our favor. So, expect that to continue to the downside going into next week, as well. So, keep an eye on the US Dollar pairs, these are going to be so crucial to us going forward.
I hope you’ve enjoyed the content this week. I hope you’ve done well, and I’ll speak to you next week. Have a great weekend.
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